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Colaboration with Eric Shannon, PhD

Primary Challenge

Examine the role of current market structure, including regulatory environment, on the likelihood of market entry as well as the likelihood of becoming a viable competitor to the current market leaders.


In order to explore these dynamics two sectors will be examined: the airline/aviation industry as well as the mobile telephone industry.

Sectors were selected for the following reasons:
  1. Neither sector has a geographically limited market within the United States;
  2. Both sectors are subject to nominal government regulation as it relates to mergers, etc...
  3. both markets are dominated by a small number of market leaders but susceptible to the entry of “low cost carriers” who attempt to offset market equilibrium.


H1: There is a polynomial relationship between market specific barriers to entry and the number of firms within a market. H2: Differences in firm size within markets is predictive of the likelihood of market leader turnover frequency. H3: As market size increases there is a decrease in market leader turnover.

Preliminary Analysis

Using Panel vector autoregression model (PVAR) based on evaluating the Airline industry financial information, the primary factors that are important in predicting whether an airline is the top firm is whether they're the top firm in time t-1, and time t-2.